Trump's tariffs are a huge blow to Vietnam's economic ambitions

US President Donald Trump's sweeping tariffs targeting most of the world are now in effect – and outside China, no other region has been hit as hard as South East Asia. Near the top of the list are Vietnam and Cambodia which have been hit by some of the highest tariffs: 46% and 49%. Further down are Thailand (36%), Indonesia (32%) and Malaysia (24%). The Philippines gets a tariff of 17%, and Singapore of 10%.

This is a huge blow for a region highly dependent on exports. Its widely admired economic development over the past three decades has largely been driven by its success in selling its products to the rest of the world, in particular to the US.

Exports to the US contribute around 30% of Vietnam's GDP, and 25% of Cambodia's. That growth story is now imperilled by the punitive measures being imposed in Washington. The longer-term impact of these tariffs, assuming they stay in place, will vary, but will certainly pose big challenges to the governments of Vietnam, Thailand and Cambodia in particular.

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